OKEx, a well-known crypto exchange, ranked 11th, requests for patience as users are deadlocked from withdrawing their funds. The company stated that they are working rigorously to ensure normalcy in the digital asset withdrawal.
OKEx Matters in Question
OKEx has disputed claims that one of their founders is under criminal investigation. They insisted that the concerned individual is co-operating with the law enforcers and aiding in a specific case. OKEx has been in contact with the arrested individual and has hired an external counsel to steer the issues. The company cannot disclose the contents of the investigation as the matter is private.
Understandably, the users are worried and frustrated about not accessing withdrawals. OKEx wants to assure its customers that their funds are safe; there has been no outflow of assets since the suspension of withdrawals on October 16. Other business operations are running as usual, and the platform will regain full functionality soon. OKEx is also grateful to all partners and users for their continued support.
OKEx emphasized that all decisions made were based on customers’ best interests and were in their service contract. According to 8.1 Modification of Service and Termination, OKEx can change, halt, suspend, or terminate a service at any point in time with or without giving notice.
Accessing Cold Storage Wallets
The company halt of withdrawal protocol is new in the crypto world. The leading crypto-fiat exchange company released a statement on Friday morning, and they stopped all 4 pm Hong Kong withdrawals on that fateful day. Massive withdrawals of bitcoin, ether and Tron were completed from known OKEx addresses, as Whale Alert reported. It is speculated that it was linked to the suspension.
It is rumored that OKEx founder, Xu ming, was arrested in unclear circumstances. Trouble seems to be following Xu as he had also been detained in September 2018 as issues arose with investors who claimed to incur huge losses on his bitcoin platform. The exchange crashed when other cryptos rose by 10%, causing significant losses for investors trading crypto futures.
The company stated that one of their major exchange keyholders was in talks with a security bureau, thus causing the withdrawal hitch. The withdrawal protocol requires a particular amount of authorized signatories, and one had been arrested. Traders and investors are frustrated, and OKEx has not provided clear reasons why one signatory could paralyze the entire withdrawal protocol.